CCCP False Claims Act & Whistleblower Laws 4 — Questions and Answers
Question 1: Under the FCA's statute of limitations, when does a qui tam action brought by a relator (without government intervention) expire?
- 6 years from the violation or 3 years after the government knew or should have known, not to exceed 10 years (Correct answer)
- 3 years from the violation date only
- 5 years from the date the relator discovered the fraud
- 10 years from the date of the last false claim
Correct answer: 6 years from the violation or 3 years after the government knew or should have known, not to exceed 10 years
The FCA's statute of limitations is 6 years from the violation or 3 years from when the responsible official knew or should have known, whichever is later, capped at 10 years.
Question 2: A company settles an FCA case without admitting liability. What is the typical compliance obligation imposed in the settlement agreement?
- A Corporate Integrity Agreement (CIA) with the HHS Office of Inspector General (Correct answer)
- An immediate debarment period
- A mandatory criminal guilty plea
- Appointment of a government-selected CEO
Correct answer: A Corporate Integrity Agreement (CIA) with the HHS Office of Inspector General
Healthcare FCA settlements frequently require a CIA with HHS-OIG, imposing monitoring, compliance program requirements, and reporting obligations for typically 5 years.
Question 3: The FCA's 'materiality' standard after Escobar requires plaintiffs to show that the false statement:
- Had a natural tendency to influence or was capable of influencing the government's payment decision (Correct answer)
- Actually caused the government to make the payment
- Was the sole reason for the government's payment
- Appeared in the face of the submitted claim form
Correct answer: Had a natural tendency to influence or was capable of influencing the government's payment decision
Escobar adopted an objective materiality test: the misrepresentation must have a natural tendency to influence or be capable of influencing the payment decision, not necessarily be the direct cause.
Question 4: Under the SEC Whistleblower Program, what happens to an award if the whistleblower unreasonably delayed reporting the information?
- The SEC may decrease the award percentage (Correct answer)
- The award is automatically forfeited
- The award increases to compensate for the delay risk
- Delay has no effect on the award amount
Correct answer: The SEC may decrease the award percentage
The SEC's award determination factors include whether the whistleblower unreasonably delayed, which can be used to reduce the award within the 10-30% range.
Question 5: A state employee reports Medicaid fraud to state authorities. Which law provides the primary whistleblower protection in this scenario?
- The applicable state False Claims Act if the state has one meeting federal standards (Correct answer)
- Only the federal FCA
- The Sarbanes-Oxley Act
- The State Government Ethics Act
Correct answer: The applicable state False Claims Act if the state has one meeting federal standards
Many states have enacted their own False Claims Acts with whistleblower protection provisions; states with qualifying laws receive a larger share of federal Medicaid recoveries.
Question 6: Which element is NOT required to establish an FCA retaliation claim under 31 U.S.C. § 3730(h)?
- The employer must have actually known about the internal investigation (Correct answer)
- The employee engaged in protected activity
- The employer knew of the protected activity
- The employer took an adverse employment action
Correct answer: The employer must have actually known about the internal investigation
An FCA retaliation claim requires protected activity, employer knowledge of that activity, and an adverse action—it does not require proof the employer knew of any internal investigation.
Question 7: The 'original source' exception to the FCA's public disclosure bar requires the relator to have:
- Direct and independent knowledge of the information on which the allegations are based (Correct answer)
- Filed a prior complaint with a federal agency
- Worked for the defendant for at least one year
- Obtained the information through a government FOIA request
Correct answer: Direct and independent knowledge of the information on which the allegations are based
To qualify as an original source, the relator must have direct and independent knowledge of the underlying facts and must have voluntarily provided that information to the government before filing.
CCCP False Claims Act & Whistleblower Laws 4
Under the FCA's statute of limitations, when does a qui tam action brought by a relator (without government intervention) expire?